This question tests your knowledge of what activities are included in calculating GDP. Decide for each item whether it is part of GDP and, if so, to which expenditure category it belongs. 4.1. The cost of launching a space shuttle by NASA is: A. Not counted in GDP B. Counted as part of consumption C. Counted as part of investment D. Counted as part of government E. Counted as part of net exports

1 answer
Question:

This question tests your knowledge of what activities are included in calculating GDP. Decide for each item whether it is part of GDP and, if so, to which expenditure category it belongs.
4.1. The cost of launching a space shuttle by NASA is:
A. Not counted in GDP
B. Counted as part of consumption
C. Counted as part of investment
D. Counted as part of government
E. Counted as part of net exports

Answers

Answer: D. Counted as part of governmentExplanation:The space shuttle is a final good therefore, it will be counted as the output of the economy as part of the government spending because NASA (National Aeronautics and Space Administration) is a government agency

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